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US – Everi expects record revenues in second quarter

By - 21 June 2021

Everi Holdings, a provider of land-based and digital casino gaming content and products, financial technology and player loyalty solutions, has said it expects to set new quarterly records for revenue in its second quarter results ending June 30, with revenue of between $167m and $172m expected.

The increase equates to more than 25 per cent compared to $129.7m in the pre-pandemic 2019 second quarter

The company said: “The expected record 2021 second quarter results demonstrate meaningful quarterly sequential improvement compared to the 2021 first quarter results as well as substantial growth compared to the pre-pandemic 2019 second quarter results, even with a continued albeit lesser impact from the COVID19 pandemic.”

Michael Rumbolz, Chief Executive Officer of Everi, added: “Our expected record 2021 second quarter results highlight the ongoing strength of our core recurring revenue businesses and the benefit of our organic growth initiatives. Both our Games and FinTech segments are performing significantly above pre-pandemic periods, driving substantial improvements in our total revenue, net income, Adjusted EBITDA, and Free Cash Flow. Since March, the total value processed of our financial access transactions on a same-store basis has been consistently trending at a mid-teens percentage growth rate above the comparable 2019 volumes. This is significantly higher than our mid-single digit percentage historical average growth rate. Additionally, our gaming operations installed base has continued to grow, fueled primarily by a greater number of premium units, which is also driving new record levels of Daily Win per Unit. We also expect our gaming machine unit sales in the second quarter will well exceed the level shipped in the first quarter of 2021.

“Our strong performance is driven by the collaborative efforts of the worldwide Everi Team to continuously enhance our product portfolio and innovate new products that help our customers extend the connection with their guests and operate more efficiently, as well as our focus on providing unmatched customer service. Given the momentum of our products in both of our business segments and our continued focus on operating execution, as well as the potential opportunity to lower our annual interest expense through refinancing of our outstanding debt, we believe Everi is well positioned to continue to generate strong Free Cash Flow and further grow shareholder value.”

Everi announced a plan to take advantage of favourable market conditions to refinance its outstanding total debt and extend maturities. Everi plans to refinance its $35m Revolving Credit Facility due 2022 and its $820m Term Loan Facility due 2024, prepay in full its $125m Incremental Term Loan Facility due 2024, and redeem the $285.4m of Unsecured Notes due 2025. After refinancing its $1,144.9m total outstanding debt, the Company expects to have $1.0 billion of outstanding total debt and to have a new $125m Revolving Credit Facility that will be undrawn at closing.

David Bain, a Senior Research Analyst with B. Riley Securities, said: “We further believe EBITDA has reached a new baseline from continued win per day gains driven from premium unit installations, market share/ship share gains of recurring/participation installations and of for-sale units, and the thawing of capital budgets by operators for replacement game purchases.”

David Katz, Managing Director at Jefferies, said: “The announcement supports our positive view on the company. We expect product momentum in both segments to continue to accelerate, driven by a robust macro environment and management’s track record of execution.”

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